Royal Mail Group announces new-look board and far-reaching changes to top management

Royal Mail Group Chairman Allan Leighton today announced a new Board structure together with far-reaching changes to top management pay and conditions across the Group.

Mr Leighton said: “These are major changes. We have to move much more than just the deck chairs if we want to avoid being another Titanic! Seven external Board appointments and two internal promotions show that we mean business and we are starting from the top.”

The Royal Mail Group will consist of only four operating businesses: three Royal Mail businesses – UK, Logistics and International – together with Parcelforce Worldwide. Each one of these businesses will be profit and loss accountable.

Jerry Cope will be Managing Director UK, Royal Mail, Vanessa Leeson is promoted to the Board as Managing Director Parcelforce Worldwide, Paul Bateson is promoted to the Board as Managing Director Logistics, and Kevin Williams becomes Managing Director International.

In addition, three key operational support divisions will be created – Finance, Information Technology and Human Resources.

Marisa Cassoni as Chief Finance Officer will add Regulation and Property to her Finance responsibilities. David Burden, who has joined the company from Qantas as Chief Information Officer, will be responsible for IT and Procurement. A new HR Director will be announced shortly.

As announced earlier this year, John Roberts will retire in December and a new Chief Executive for Royal Mail Group will be announced soon.

David Mills, Chief Executive, Post Office Ltd, has already restructured the separate Post Office Ltd board.

Mr Leighton said “I hope to announce four new Non Executive Directors in the next ten days”.

Mr Leighton also announced far-reaching changes in top management pay and rewards. He said that, in future, pay would be set at market rates, but would be much more performance-related, and that the present right to access early pension at 50 would be removed.

“The primary purpose of this new organisation is to put sales, operational, and profit accountability firmly into the business units, with the central support tasked to reduce costs while driving service up,” said Mr Leighton. He said that most inter-business charging would be eliminated.

“The next stage is to reduce the number of layers between the Board and the front line. The business focus will move emphatically to our people and our customers,” he said.